World's first Bitcoin ATM to open Tuesday

A mockup of a Bitcoin, a virtual currency traded worldwide, is held in this photo illustration in...

A mockup of a Bitcoin, a virtual currency traded worldwide, is held in this photo illustration in Sandy, Utah in this Sept. 17, 2013 file photo. REUTERS/JIM URQUHART

QMI Agency

, Last Updated: 10:33 AM ET

Vancouver can boast that it's the first city in the world to have a Bitcoin ATM.

Bitcoin is a revolutionary digital cash system that uses a peer-to-peer network to transfer money anywhere in the world instantly and at practically no cost. Though Bitcoin began as niche technology embraced mostly by internet geeks, it is gradually spreading not only to everyday people, but into the everyday world, wired.com says.

The automated teller machine is being installed outside a downtown coffee shop in Vancouver on Tuesday by Bitcoiniacs, a local Bitcoin exchange store that hopes to set up shop in Toronto, Montreal, Calgary and Ottawa.

To buy Bitcoins with the Robocoin ATM, you need to do a palm scan and then stuff the machine with as much as $3,000 dollars a day, wired.com says. The machine then makes a trade on the VirtEx exchange and moves them into your online Bitcoin wallet. The palm scan is to prevent people from doing more than $3,000 worth of transactions, as that would run afoul of our anti-money-laundering laws, Bitcoiniacs co-founder Mitchell Demeter says.

Bitcoins made headlines last week when the United States Attorney in New York said about $28 million worth of Bitcoins had been seized from a man charged with operating a notorious online drug marketplace known as Silk Road.

 


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